U.S. Army Awards General Motors, General Dynamics $48 Million Contract to Supply Mobile Gun Systems

SHELBY TOWNSHIP, Mich., Dec. 19 -- The U.S. Army has awarded GM GDLS Defense Group, a joint venture between General Motors and General Dynamics Land Systems, a delivery order worth $48 million for 10 Mobile Gun System vehicles to equip its new Brigade Combat Teams.

These mobile gun systems will be delivered monthly from July 2002 to January 2003 at General Dynamics Anniston (Ala.) facility.

In November 2000 the U.S. Army awarded GM GDLS Defense Group a six-year contract with an estimated total value of $4 billion to equip its new Brigade Combat Teams with a family of eight-wheeled armored vehicles. The requirements-based contract is to equip up to six Brigade Combat Teams, or 2,131 vehicles, through a series of delivery orders. This order adds to the first delivery order for $61.7 million in Research, Development, Test and Evaluation; and second delivery order for 366 production vehicles worth $578.4 million both awarded November 16, 2000.

The Mobile Gun System consists of a 105mm tank cannon mounted in a low-profile turret integrated on the General Motors Interim Armored Vehicle (IAV) chassis. The IAV is a full-time four-wheel drive, selective eight-wheel drive, armored vehicle weighing approximately 19 tons. It can attain speeds of 62 mph on the highway and has a maximum range of 312 miles.

General Motors and General Dynamics will share vehicle fabrication between plants at Lima, Ohio and London, Ontario. General Dynamics will complete vehicle assembly and turret integration on Anniston (Alabama) Army Depot. General Dynamics' plants in Eynon, Penn., Muskegon, Mich. and Tallahassee, Fla., will build and machine sub-components for the mobile gun system.

GM Defense is a group of GM-owned business units engaged in the design and production of Light Armored Vehicles and supporting turret systems for military use around the world. The group comprises research, design, and manufacturing facilities in London, Ontario; Goleta, California; Troy, Michigan; Kreuzlingen, Switzerland; and Adelaide, Australia. Operations within GM Defense have more than 50 years of experience in the design, manufacture, and delivery of a unique family of light armored vehicles. Those vehicles are in service with the United States Marine Corps, the United States Army National Guard, and with other military forces around the globe.

General Dynamics Land Systems is a wholly owned subsidiary of General Dynamics . General Dynamics, headquartered in Falls Church, Virginia, employs approximately 52,000 people and anticipates 2001 sales of approximately $12 billion. The company has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.